To reduce the cases of tax evasion, the government has made it mandatory to deduct the tax right at the transaction’s source. It means, one party, generally, the tenant in rental property transactions, has to deduct the tax amount on the government’s behalf, as the transaction is underway. This tax deduction is referred to as TDS or tax deduction at source. Read below to learn about the TDS percentage on rent:TDS On Rent PercentageThe Income Tax Act’s Section 194I states that any association of person, trust, firm, company, etc., as well as any HUF or individual who’s liable to audit, can deduct TDS at the rate of 10% of the rent if the total rent paid or likely to be paid during the year exceeds Rs.2.4L.The Income Tax Act’s Section 194IB states that HUFs and Individuals that don’t come under the above section can deduct TDS at the rate of 5% of the rent if the monthly rent or part of the monthly rent is more than Rs.50K.This is the TDS percentage for rent!Do You Know What’s the TDS limit for Rent? Check it Out HereDo You Know What is the TDS rate on rent? Click Here to Find OutRead What is TDS and How it’s Calculation is Done
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what is the percentage of TDS on rent?
Harsh
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September 23, 2021
2021-09-23T13:03:45+00:00 2021-09-24T17:32:56+00:00Comment
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Taxes
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